Current auto loan rates

What this series does and does not cover

These are averages at commercial banks only. They exclude credit unions, which commonly price one to two points below banks, and they exclude captive finance arms — the lending subsidiaries of the manufacturers — whose subsidized promotional offers can run far below any market rate because the cost is absorbed as a sales incentive. A 0% or 1.9% manufacturer offer is not a lending rate; it is a discount delivered through financing, and it is usually offered instead of a cash rebate rather than alongside one.

Term length and used versus new

Longer terms carry higher rates and much higher total interest. The 72- and 84-month terms now common in the market are not in this series, and they are where negative equity accumulates: a long amortization can leave a borrower owing more than the vehicle is worth for the first several years. Used-car loans price above new across every term, because the collateral is worth less and depreciates less predictably.

How auto rates respond to the Fed

Auto loans are short-duration and funded largely by deposits, so they track the short end of the curve far more closely than mortgages do. When the Fed moves, auto rates follow within roughly a quarter — faster than mortgages, slower than credit cards. Because this series is monthly, a Fed decision taken last week will not appear in the table above for some time.